FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
More about the Perth Small Business Loans
Let me know about the Perth Small Business Loans
Perth unsecured loans offers amounts of between $5,000 and $100,000. The terms range between 3 and 24 months and cash flow friendly repayments, which are either daily or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
The application to the Small Business Loan in under 10 minutes via the internet or on the phone. You’ll receive an answer within the same day and the money could be available in just 24 hours. Traditional company loans have an annual interest rate together with additional fees and charges. This business loan is an upfront priced loan so you will know ahead of time the amount you will have to pay, including any fees, charges or charges. This is then broken down into either a daily or weekly repayment figure.
What can you use the Small Business Loan be used for?
A Small Business Loan can be used for virtually every business use, including cash flow management, company remodels and marketing, to purchase inventory or new equipment, for general working capital and so much more. The loan cannot be used for personal purposes.
About the Larger Perth Business Loans
What is the Larger Perth Business Loan?
The Larger Business Loan is a larger loan size to support business expansion opportunities. Loans range between $100,000 and $500,000 with a fixed-term up to 36 months. The repayments are made weekly or fortnightly depending on your cash flow.
How is the Origination Fee calculated?
It is important to note that the Larger Business Loan has an Origination Fee, which is calculated at 2.5 percentage of the loan amount.
Am I eligible for the Larger Business Loan?
To qualify for a loan in this amount the business needs to be operating for a minimum of 3 years, and have an annual income of $700K. You must be a New Zealand Citizen (or Permanent Resident) at least 18 years old and have a New Zealand business (with a valid NZBN/IRD) and be able to demonstrate at minimum 12 months of continuous trading.
How can the funding be used for?
A Larger Business Loan can be used for almost every company use, including company renovations, to purchase equipment or inventory, as general working capital and so much more. The loan is not available to fund personal expenses.
Is the Larger Business Loan a secured loan?
Asset security is needed for accessing funds over $150,000. This is as a result of an charge against assets, which could also include the registration of this in the PPSR or the registration of as a caveat.
A director’s or personal ensure is a guarantee to repay a loan which is generally based rather than defining the security for a particular asset. The person signing the guarantee is personally liable in the event that the business creditor is unable to pay back the debt.
The Personal Property Securities Register (PPSR) is a central, national online register that is operated by the New Zealand Government. It contains security interests that are registered for personal property (including goods or assets). The PPSR grants priority over personal property to be assigned in accordance with the date on which a security interest that is registered.
A caveat is a legal document lodged to offer the public notice of a legal claim to a property.
What is a pre-approval minus Credit Check?
If you’re applying for the Larger Business Loan of $250,000 or more, we may offer an initial pre-approval to simplify the process. We might be able to make this decision without a credit check, and within 6 hours of your initial application. The pre-approval is based upon an initial assessment that includes the answer to a series of financial health checks. It is not an offer or guarantee of financing. A conditional approval is subject an extensive credit evaluation and any offer that you are offered could be subject to different conditions.
Application process
Do I qualify for funds?
You may be eligible for an business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are over the age of 18 and have a New Zealand business (with a valid NZBN/IRD)
- must show at least six months of business (for you to qualify for unsecured loan $5K – $100K) or three years of trade (for the Larger Business Loan $100K up to $500K)
How do I apply?
The application process is fast and easy. Complete the online form in just a few minutes, and a dedicated business lending specialist will contact you to help you.
To apply for up to $100,000, you’ll require proof of identity (valid Driver’s License) along with an active NZBN/IRD, and at least six months worth of bank statements.
Otherwise, for larger loan sizes, you’ll need:
$100K – $250K: Information about the application including credit approval, 6-12 months of bank statements, IRD statement (if credit is over $150K).
$250K – $500K: Application details including credit consent twelve months of bank records, IRD statement, last 2 years finalised financial statements, as well as interim financials from the current financial year as well as Aged Payables and Receivables Summary.
How fast will I get an answer?
For an unsecured loan ($5K and up) we typically provide a response in one hour, provided you submit your request at standard business times and permit us to make use of the advanced bank verification system to immediately verify your bank account information online. If you opt to send us copies of your bank statements , we will be able to provide an answer in as little as one company day.
For Larger Business Loans ($100K up to $500,000) we may be capable of offer you with a conditional pre-approval within about six hours. Once you have signed the pre-approval, turnaround times are about 2-3 days for final approval, however this could be shorter based on the specifics of each application. Certain offers have been approved within the space of 24 hours.
The quickest method for you to apply is ensure you apply during normal business hours, and let us use the advance bank verification to verify your bank account information online. If you choose to send us duplicates of your banking statements it will take a little longer.
How fast will I get the funds?
For the Small Business Loan ($5K or more) we can often provide an answer within an hour – provided you make your application in standard business time and permit us to use the bank verification system to instantly verify your bank information online. If you want to upload copies of your banking statements, we will be able to provide an answer within the span of one business day.
If you are applying for Larger Business Loans ($100K up to $500,000) We may be in a position to provide the conditional pre-approval in about six hours. After you’ve signed the pre-approval, turnaround times are about 2-3 days for final approval, however this may be quicker depending on the circumstances of each application. Some offers have been approved within 24 hours.
The fastest way would be to make sure you apply during standard business hours. Also, allow us to use the sophisticated bank verification to instantly check your bank’s information online. If you opt to upload the copies of bank statement, it takes a bit longer.
What’s the minimum amount I can borrow?
We offer the loan amount between $5,000 and $500,000. If you apply for a particular amount, we look at a variety of variables that determine the health of your business and the amount of the repayments your company will be able to support. The total amount of your loan will be contingent on the specific circumstances the business.
When you submit an application for a specific amount we take into consideration a variety of aspects to assess the well-being of your business and the extent of repayments your company can afford. The amount you receive from your loan will depend on the specifics that are unique to your business.
Fees & repayments
How much do you charge for an business loan?
If you decide to apply for one of our company financing, we will assess the risk assessment that you have for your company and provide you with a customised offer that includes the loan amount, the terms and the interest rates. It is a business loan is a loan that is priced upfront therefore you will be aware of the total amount payable including any charges, interest rates or fees.
What is the basis for the rate I pay?
Business loan interest rates depend on several factors such as the amount that is borrowed, what company assets the funds are used to purchase in addition to the industry that the business operates in, how long the company has been running and how long the business has sufficient cash flow to pay for the loan, as well as the overall health and creditworthiness of the business.
What are the charges?
There are no hidden fees with our business loans, and you’ll know exactly how much it is that you need to pay, and when, starting from the day you sign up. There’s no compounding and no additional fees (as long as you make your payments in time).
We don’t charge an Application Fee. You are able to apply for a loan with no cost upfront or any obligation to sign up.
The Origination Fee covers the costs associated in establishing and managing the loan. The only way to pay this fee if you proceed with the loan. The Origination Fee for us is 2.5 percentage of the loan amount.
Can I pay off the loan earlier?
You can repay the entire amount of the loan in full at any time.
If you decide to take this route, please talk to one of our helpful business credit specialists. They will provide you with details for repayment as well as an early payout amount. It will be calculated using the sum of the remaining principal amount and the accrued interest up to the time of early payment, plus 1.5% of the principal amount remaining as well as any outstanding fees.
What is the process for repayments?
In order to help you avoid missing repayments and to fit in your cash flow cycle we provide payments that are either weekly or daily. They will be automatically deducted from your designated company account.
Security & privacy
Will my information be protected?
Security of your data, and making it clear how we collect data, process, exchange and safeguard your data, is of paramount importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We make use of industry-standard encryption standards to protect your personal, sensitive and financial data and our funders are ISO 27001 certified for our dedication to the security of our customers as well as their security. We employ a highly sophisticated bank verification system to immediately verify your bank account details online so we can provide a fast response.
About business loans
What is asset-based borrowing (a secured loan)?
An asset-based loan is when a company owner makes use of an asset that they own to secure the loan. The asset could be an asset belonging to the personal, like the family home, or an business asset such as a truck or piece of equipment.
The vast majority of lending institutions, including the major banks, prefer to guarantee loans against assets. If you’re struggling to pay back the loan then the asset could be taken over by the lender. In essence, it’s an opportunity to secure new funding using the worth of the asset you already own.
Should I need security to get an company loan?
For loans that exceed $150,000, it is not necessary to secure assets in advance to gain access to the funds, however we require a personal guarantee. need an individual guarantee. As long as you follow the loan terms (as detailed in your loan contract document) Asset security is not required. If you take out loans in excess of $150K generally there is the option of a personal ensure and security that is in the form the charge of assets.